Slide 1: First Quarter Fiscal 2023 Earnings Presentation
First Quarter Fiscal 2023 Earnings Presentation February 16, 2023 Applied Materials External
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements, including those regarding anticipated growth and trends in our businesses and markets, industry outlooks and demand drivers, technology transitions, our business and financial performance and market share positions, ou
Slide 3: Applied Materials At-A-Glance
APPLIED MATERIALS AT-A-GLANCE REPORTING SEGMENTS FOUNDED Semiconductor Systems CURRENT FISCAL 1967 YEAR ENDS FIRST PUBLIC Applied Global Services 29 October 2023 OFFERING Display and Adjacent Markets 1972 $2.9 billion ~33,000* $26.3 billion ~17,300* TTM R&D employees TTM REVENUE INVESTMENTS active p
Slide 4: Applied is Well Positioned to Outperform our Markets in 2023
Q1F23 Summary 2023 Outlook Longer Term Delivered strong Expect 2023 WFE down Y/Y: Semiconductors are the first-quarter results Leading-edge F/L foundation of the digital ICAPS* economy; expect market Made progress mitigating to grow to $1T by 2030 Memory supply chain constraints to meet custo
Slide 5: Investment Thesis
Investment Thesis Market Outlook = Innovation and Secular Growth Applied = PPACt Enablement Company New and Growth in adjacent Unit process Co-optimized Actionable insight / leadership and and integrated time to market subscriptions materials broadest portfolio solutions acceleration and services en
Slide 6: Broadest portfolio of products and technologies to accelerate new PPACt playbook
ENABLED BY KEY INFLECTIONS ▪ New ASICs and accelerators New architectures ▪ New memory / in-memory compute ▪ Specialty, CIS, power ▪ GAA transistors New structures / 3D ▪ Backside power delivery ▪ 3D NAND, 3D DRAM ▪ Gate New materials ▪ Contact ▪ Interconnect ▪ EUV enablement New ways to shrink ▪ Ma
Slide 7: Q1F23 Non-GAAP Financial Results
Q1F23 Non-GAAP Financial Results $M, except EPS Q1F22 Q4F22 Q1F23 Y/Y Q/Q Revenue 6,271 6,749 6,739 7% 0% Gross Margin* 47.3% 46.0% 46.8% (50bps) 80bps Operating Income* 1,985 2,010 1,987 0% (1%) EPS* $1.89 $2.03 $2.03 7% 0% Operating Cash Flow 2,658 857 2,270 (15%) 165% Free Cash Flow** 2,514 634 1
Slide 8: Q1F23 Segment Results
Q1F23 Segment Results SEMICONDUCTOR SYSTEMS APPLIED GLOBAL SERVICES DISPLAY & ADJACENT MARKETS 39% 31% 31% 31% 21% 22% 21% 37% 36% 37% 37% 28% 28% Non-GAAP Operating Margin* Non-GAAP Operating Margin* Non-GAAP Operating Margin* 5,162 1,420 1,420 5,038 1,383 14% 1,369 4,734 1,320 4,567 4,458 381 366
Slide 9: Liquidity and Uses of Capital
Liquidity and Uses of Capital CASH AND INVESTMENTS ($M) Q1F22 Q2F22 Q3F22 Q4F22 Q1F23 Cash and cash equivalents 5,264 3,331 2,956 1,995 3,547 Short-term investments 473 591 592 586 500 Long-term investments 2,026 2,102 2,047 1,980 2,088 Total cash and investments 7,763 6,024 5,595 4,561 6,135 Commer
Slide 10: Business Outlook
Business Outlook Total Revenue ~$6.40B ± $400M SECOND OUTLOOK* Non-GAAP EPS ~$1.84 ± $0.18 QUARTER Includes negative estimated impact of $250M Fiscal 2023 Semiconductor Systems ~$4.84B SEGMENT Applied Global Services ~$1.34B REVENUE Display and Adjacent Markets ~$160M Non-GAAP Gross Margin ~46.5% OT
Slide 11: 10-Yr Roadmap | Environmental and Social Responsibility
10-Yr Roadmap | Environmental and Social Responsibility APPLIED’S SEMI INDUSTRY’S GLOBAL OPERATIONS OPERATIONS ELECTRONICS 1x 100x 10,000x Achieved 100% renewable Strong collaboration with PPACt engagements with customers’ energy in US in 2022 and leading customers on 3x30 customers focus on energy-
Slide 12: Additional Resources
Additional Resources Investor Relations Home Page LINK Latest News LINK Blog: Ideas, Actions & Technologies LINK 2021 Memory Master Class LINK 2021 Logic Master Class LINK 2021 ICAPS and Packaging Master Class LINK 2021 Process Control and AppliedPRO Master Class LINK 2022 New Ways to Shrink Master
Slide 13: Appendix: GAAP to Non-GAAP Reconciliations
Appendix GAAP to Non-GAAP Reconciliations 13 | Applied Materials External
Slide 14: Use of Non-GAAP Adjusted Financial Measures
Use of Non-GAAP Adjusted Financial Measures Applied provides investors with certain non-GAAP adjusted financial measures, which are adjusted for the impact of certain costs, expenses, gains and losses, including certain items related to mergers and acquisitions; restructuring and severance charges a
Slide 15: Unaudited Quarterly Reconciliation of GAAP to Non-GAAP Adjusted Results
UNAUDITED QUARTERLY RECONCILIATION OF GAAP TO NON-GAAP ADJUSTED RESULTS IN MILLIONS, EXCEPT EPS AND PERCENTAGE Q1F22 Q2F22 Q3F22 Q4F22 Q1F23 Non-GAAP Adjusted Gross Profit Reported gross profit - GAAP basis $ 2,959 $ 2,927 $ 3,006 $ 3,101 $ 3,145 Certain items associated with acquisitions 1 6 7 7 6
Slide 16: Unaudited Quarterly Reconciliation of GAAP to Non-GAAP Operating Expenses
UNAUDITED QUARTERLY RECONCILIATION OF GAAP TO NON-GAAP OPERATING EXPENSES IN MILLIONS Q1F22 Q2F22 Q3F22 Q4F22 Q1F23 Operating Expenses (GAAP Basis) $ 983 $ 1,033 $ 1,082 $ 1,107 $ 1,175 Certain items associated with acquisitions (3) (3) (3) (4) (4) Acquisition integration and deal costs (4) (9) (19)
Slide 17: Unaudited Quarterly Reconciliation of GAAP to Non-GAAP Segment Operating Results
UNAUDITED QUARTERLY RECONCILIATION OF GAAP TO NON-GAAP SEGMENT OPERATING RESULTS IN MILLIONS, EXCEPT PERCENTAGE Q1F22 Q2F22 Q3F22 Q4F22 Q1F23 Semiconductor Systems Non-GAAP Adjusted Operating Income Reported operating income - GAAP basis $ 1,771 $ 1,648 $ 1,701 $ 1,849 $ 1,917 Certain items associat
Slide 18: Make Possible
Cll arenas. make possible